Remittances to SS Africa Grow 5.2% in 2022

ADDIS ABABA – Remittances to Sub-Saharan Africa grew an estimated 5.2% to $53 billion in 2022. This, is sharply lower than the 16.4% increase in 2021, according to the latest World Bank Migration and Development Brief.

In a special feature on climate-driven migration, the brief says remittance flows to developing regions were shaped by several factors in 2022.

A reopening of host economies as the COVID-19 pandemic receded supported migrants’ employment and their ability to continue helping their families back home. Rising prices, on the other hand, adversely affected migrants’ real incomes.

In countries that experienced scarcity of foreign exchange and multiple exchange rates, officially recorded remittance flows declined as flows shifted to alternative channels offering better rates.

Growth to drop further

Sub-Saharan Africa, it says, is the most highly exposed to the effects of the global crisis.

Remittance flow to the region in 2023 is also projected to soften to 3.9% growth as adverse conditions in the global environment and regional source countries persist.

Remittances as a share of GDP are significant in the Gambia (28%), Lesotho (21%), and Comoros (20%).

Sending $200 to the region cost 7.8% on average in the second quarter of 2022, down from 8.7% a year ago. Remitting from countries in the least expensive corridors is on average 3.4% compared to 25.2% for the costliest corridors, says the brief.